The objective is to gather stakeholders’ views on the elements of the evaluation and the review. Separate consultations for the evaluation of Innovation Fund and Modernisation Fund were also published in parallel.
The ETS Directive was revised in 2023 as part of the ‘Fit for ‘55’ package, enhancing its environmental ambition and extending carbon pricing to new sectors of the economy. Certain aspects of the ETS are subject to review to ensure that the EU ETS continues to contribute in a cost-efficient manner to the overall goal of reaching economy-wide climate neutrality by 2050, taking into account the need for all sectors to contribute to the EU climate efforts. The ETS Directive contains several review clauses relating to ETS1 to assess potential adjustments to the system relating to aviation, maritime transport and stationary installations.
The ETS Directive and the MSR Decision are also due for evaluation following the “evaluate first” principle. According to this principle, initiatives must be evaluated before being subject to a revision. The evaluation will look at the ETS Directive’s implementation since the amendments introduced by Directive (EU) 2018/410, and at the Decision’s implementation relating to the functioning of the MSR from when it started functioning in 2019 to the present.
Interested parties are invited to provide their feedback to the public consultation through the Have Your Say Portal by 8 July 2025.
Open Public Consultation on the EU Emissions Trading System and Market Stability Reserve
Open Public Consultation on the Innovation Fund
Call for evidence on the Modernisation Fund
